Central Bank revokes licenses of 46 microfinance banks
The Central Bank of Nigeria (CBN) revoked the operating licenses of 46 microfinance banks across the country on Wednesday for failing to comply with regulatory requirements. The decision was announced in a statement by its Acting Director of Corporate Communications, Hakama Sidi-Ali, and takes immediate effect. The CBN stated that the action was taken in line with its powers under Sections 12 and 13 of the Banks and Other Financial Institutions Act (BOFIA), 2020.
The affected microfinance banks failed to meet the conditions required to continue operating as licensed financial institutions. Regulatory infractions identified included insufficient assets to meet liabilities, closure of operations without CBN approval, prolonged inactivity and cessation of financial intermediation, failure to commence business within 12 months of receiving a license, and failure to maintain the required minimum capital unimpaired by losses. The CBN stated that "The revocation of the licences is part of the bank's ongoing efforts to safeguard the stability of the financial sector, protect depositors, and ensure that licensed institutions comply with current laws and regulatory requirements."
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The Central Bank of Nigeria has taken action against numerous microfinance banks across the country. This move highlights the ongoing efforts to
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